The government has rationalized GST slabs, thereby reducing applicable taxes in most cases which will make hatchbacks, subcompact SUVs, & mass-market two-wheelers cheaper soon.
Cars under 4 meters with ≤1200cc petrol or ≤1500cc diesel now attract 18% GST instead of 28%, making hatchbacks, subcompact sedans, & SUVs more affordable
Any other car will attract a flat tax of 40 per cent & unlike earlier, there will be no cess applicable on their purchase
That said, EVs will continue to attract a rate of 5 per cent irrespective of the segment theybelong to.
Two-wheelers having 350cc engines or lesser will attract an 18 per cent GST instead of 28per cent. Motorcycles & scooters running on larger engines will be taxed at 40 per cent makingthem more expensive.